Jp Morgan Essay

1051 words - 5 pages

America’s Industrial Expansion period of the 1800’s left a legacy for the modern world today. This legacy not only included new types of industry and business techniques, but also included a list of notable and impactful individuals who contributed to America’s industrial empire.
Among this list of individuals is John Pierpont Morgan. Born in Hartford, Connecticut on April 17, 1837, J.P Morgan was introduced to the banking industry at an early age. His father, Junius Morgan ran a widely, successful banking business in which J.P Morgan would eventually inherit. To prepare his son for this responsibility, Junius Morgan ensured J.P.’s education by sending him to the English High School of Boston, a strong institution specializing in business mathematics. Later, J.P. Morgan would attend Germany’s prodigious University of Göttingen.
After working at Peabody, Morgan and Company (his father’s London banking branch) and gaining experience as an accountant, J.P. Morgan relocated to J.S. Morgan & Co’s American branch in New York City. Here, he became an representative for his father’s firm. In 1864, J.P. Morgan’s assiduous determination paid off, as he became an member of great influence at Dabney, Morgan and Co. Soon, in 1871, he struck a partnership with the distinguished Philadelphian Drexels to form the new firm of Drexel, Morgan & Co. This firm was later renamed J.P. Morgan & Co. and recognized as the most prestigious and influential institutions of finance in the world that executed numerous consolidations and reorganization. As America’s Industrial Expansion period hit it’s peak, J.P. Morgan established himself as a top banker and financier.
J.P. Morgan took advantage of an eclectic range of business strategies to rise in power. These tactics included “morganization”, vertical consolidation, and gambles of investment. “Morganization” was a moniker used to describe J.P. Morgan’s process in which he stabilized shaky businesses. Through a reorganization of business management and infrastructure, J.P. Morgan returned many failing businesses to profitability.
Vertical consolidation, the acquisition of different services or facilities that lead to an overall product, was used as well by Morgan. After the Civil War, many small railroad companies faced difficult times. Immediately, J.P. Morgan recognized these opportunities and bought out the nascent companies. By 1900, he controlled a major portion of railroad assets and, overall, held an approximate one-sixth of American railroads. With such a large amount of railroads at his disposal, J.P Morgan started to vertically consolidate. Knowing that railroads and train industry called for large amounts of steel, J.P. Morgan began purchasing many steel-making businesses. Basically, Morgan’s rail companies and steel providers were owned by the same entity, thus lowering production costs. To put this in perspective, J.P. Morgan, in 1901, founded the United States Steel Company by establishing a merger...

Find Another Essay On JP Morgan

A Stock Analysis on JP Morgan Chase & Corporation

1088 words - 4 pages JP Morgan Chase & Co. is a global financial services firm that operates as: Investment bank, Treasury and securities services, Commercial banking and Asset and wealth management. It also participates in Retail financial services and Card services.In examining the company's Liquidity Ratios, the current ratio is 1.162, which means its Current Assets are slightly higher than its Current Liabilities, making it easier to liquidate since there

The Legacy of JP Morgan Essay

3859 words - 15 pages In 1871, the banking house of Drexel, Morgan & Co. was established by John Pierpont Morgan. "Twenty four years later it was renamed J.P. Morgan & Co., which it was to remain until the firm's purchase by Chase Manhattan in 2000. (Hughes 23) At this point, Chase Manhattan was the largest banking company in the United States. This was a far cry from the 1980's when Morgan "boasted the largest market capitalization of any American bank and was more

Slavery Reparations

1031 words - 5 pages with the city, such as banks, insurance companies, bond underwriters and other financial vendors, to research their history and determine any links with slavery. One major business that was forced to research their history is JP Morgan Chase and Co., the nations second largest bank. JP Morgan Chase was the first company to acknowledge their links to slavery. Two of JP Morgan Chase’s predecessor banks, Citizens Bank and Canal Bank, accepted slaves

Portfolio Selections Report – J.P. Morgan Chase & Co - University of Houston-Victoria - Research Paper

4555 words - 19 pages JP Morgan Chase & Co 1 School of Business Administration University of Houston – Victoria Portfolio Selections Report – J.P. Morgan Chase & Co FINC 6362 - Financial Institutions and Markets Soltan Matchanov Table of Contents Abstract 3 Background Information 4 Types of Deposits Used to Obtain Funds 5 Main Uses of Funds 6 Potential Regulations Affecting J.P. Morgan Chase & Co. Performance 7 J.P. Morgan Chase & Co. Insurance Services 10 J.P

Forces and Trends Research

804 words - 3 pages subcategories: factors in the remote environment, factors in the industry environment, and factors in the operating environment" (p. 78) This paper will analyze six different organizations - the United States Air Force, Barrick Gold Corporation, Kimberly Clark, Starbucks, JP Morgan Chase, and XX - in order to understand some of the forces or trends which may impact the future of their operations. The authors will also examine the concept of

Outcomes of the Second Industrial Revolution: DBQ

624 words - 3 pages the Second Industrial Revolution. As a result of the Second Industrial Revolution, there were numerous ‘Captains of Industry’ who made outlandish amounts of money through either vertical or horizontal integration. Some of these captains include Cornelius Vanderbilt, a railroad man, John Rockefeller, an oil man, Andrew Carnegie, a steel man, and JP Morgan, a rail and bank man. These men benefitted, perhaps more than any other group of people

wwwe

776 words - 4 pages be too great if Bear Stearns would be allowed to go bankrupt. Unfortunately the Federal Reserve was unable to directly give money to Bear Stearn. So they thought up a plan to give the money to JP Morgan, the bank that backed Bear, and then they would pass it on to Bear Stearns. Former Secretary of the Treasury Henry Paulson got involved. Paulson believe that the market was doomed to fail if an actual fix was not made. Paulson another believer

The Failure of Washington Mutual

999 words - 4 pages was acquired by JP Morgan Chase for $1.9B. As a result of this transaction, Chase acquired the multiple top market positions with the large number of branches, credit cards, and ATMs involved. The Fed’s reaction to this was to act as a financial intermediary with respect to the sale. The FDIC and OTS sought to keep the depositors protected, but there were also come controversy regarding the sale. The FDIC sought the sale to minimize the

Fraud in JPMorgan Chase

624 words - 3 pages National Bank of Detroit. Since JP Morgan & Company and Chase Manhattan Corporation have joined together they have become very successful, even considered the largest bank in America by some. However, recently JPMorgan Chase has agreed to pay more than $2 billion on Tuesday to settle criminal charges that the bank turned a blind eye to the largest financial fraud in US history. Former stockbroker, financier and investment broker Bernard

Inside Jobs

639 words - 3 pages risky investments. In 1999, this caused congress to pass on Gramm-Leach-Bliley Act to prevent future merges. Afterwards, when George W. Bush took office in 2001. Deregulations moves forward allowing the linking of the dominating industries such as Golden Sachs, Morgan Stanley, Citigroup, JP Morgan, etc. created a new system were lenders sold the mortgages to investments banks and they combined thousands of loans to create complex derivatives

Men Who Built America

1087 words - 4 pages were dissolved to form the Standard Oil Trust. It now had an initial capital of $70 million. Standard Oil Company owned three quarters of the American oil industry JP Morgan is considered one of the founding fathers of the modern United States economy. He was an industrial genius that is accredited with the founding of many companies including General Electric and AT&T. However,Morgan is looked upon as a saint and demon the same. His influence and

Similar Essays

Jp Morgan Chase Catastrophe Essay

815 words - 4 pages In the year of 2007, the Great Recession began. It all started at the bustling Wall Street. It was a pandemic that brought dilemma to the businesses, to the employees and to the elated new home owners. JP Morgan Chase was one of the major banks participated in falsifying the mortgage loans, and they suffered consequences for what they did. The mortgage loans gave temporary joy but longtime misery to home buyers. The federal government filed a

Jp Morgan Chase Bank Essay

2050 words - 9 pages JPMorgan Chase is one of the largest and best known banks in the banking industry. JP Morgan Chase is a global financial service firm with operations in over 50 countries. With a CEO who is known as one of the banking industries top leaders it is obvious why they are in the top 10 of the fortune 500. Although JP Morgan Chase bank is one of the leaders in the industry I believe they are a long way away from being the most innovative bank around. Banks

Synopses Of Jp Morgan Chase Essay

1052 words - 4 pages Synopses of JP Morgan PAGE 1 Running head: SYNOPSES OF JP MORGAN CHASESynopses of JP Morgan ChaseMMPBL/590 - Strategies for Competitive AdvantageUniversity of PhoenixSynopses of JP Morgan ChaseRemote Environment: Social FactorsJP Morgan Chase practices societal analysis to assess the environmental risks associated with cultural and climate change that could inadvertently affect their financial investments. "The social factors that affect a

White Collar Crime At Jp Morgan Chase

1294 words - 5 pages . Steffelin the companies’ advisor, “was charged with civil securities fraud in the case (3).” For the rest of JP Morgan Chase they claim to have no knowledge of this and they do not, tolerate anticompetitive activity (3).” Earlier this January, JP Morgan was suspected of committing home insurance fraud along with a few other major banks. They are being accused of steering, “distressed homeowners into insurance policies up to 10 times as costly as